10 Nov 2016
Pharma under investigation
An investigation by the US Department of Justice into suspected price collusion in the Pharmaceutical industry caused significant losses amongst stocks in the sector worldwide, including India. The focus of the investigation is producers of generic drugs, which are intended to cut the cost of healthcare or routine treatments. More than a dozen companies and about twice that number of treatments are in focus. A grand jury is examining whether industry executives agreed together to increase prices and charges may be filed before the year-end. Only one Indian company, Sun Pharma, was served with a subpoena and most companies are cooperating with the investigation. The treatments under investigation include a heart treatment and an antibiotic. US lawmakers have been sharply critical of drug pricing in the past year because of dramatic price rises for some popular treatments and, notably Mylan for a six-fold increase in the price of Epi-pens for the treatment of anaphylactic shock.
Posted by #richardneve at 11/10/2016